ADDIS ABABA – Prime Minister Abiy Ahmed has today inaugurated a 5.6 billion Birr expansion project at Adama Steel Factory.
The factory, built at coat of 40 million birr, started operation in 2011 with annual production capacity of 30,000 ton of nail and tin steel.
The latest expansion carried out with a cost of 5.6 billion Birr has increased the capacity to 1.2 million ton of steel per year, officials say.
It has also enabled the factory to produce more products including iron bar, wires, and more.
“Adama Steel Factory is a model for starting small and growing big,” said Prime Minister Abiy after the inauguration ceremony.
Officials expect the production increase to have a greater impact in Ethiopia’s import substitution push as well as reduce spending of scarce foreign exchange on import.
“Today’s celebration of its expansion project is an acknowledgement of the immense capacities our industries possess to produce essential construction inputs locally,” the Prime Minister said.
“Multiplying such homegrown models will greatly reduce our foreign currency expenditures,” he added.
Currently, state-run news agency ENA reported that the factory with a total capital of over 7.8 billion Birr has created permanent and temporary job opportunities for 900 people and will increase by 3,000 when it started to operate at its full capacity.